Goods and Services Tax

With Diwali round the corner and GST being implemented, the businesses are in a state of confusion as to what would happen to tax paid by them during the purchase of Diwali gifts. Various questions like whether such gifts are eligible for claiming input tax credit? Are these gifts used in the course or furtherance of business? How the invoices should be taken for these gifts. These questions are but obvious because Diwali is one occasion where business tries to fulfil all its obligations towards vendors, customers, government officials, consultants etc. As per section 16 a taxpayer is entitled to take credit of input tax charged on any supply of goods or services to him which are used in the course or furtherance of his business.  Therefore at the very first instance, we need to understand, what is in the course or furtherance of business. Course of business means usual business practice such as manufacturing, trading etc. It implies those transactions which are directly r...